Indian startups got USD12.7 bn last year

Indian startups received USD12.7 billion funding last year, a 15% growth compared to 2018. Bengaluru startups topped the list securing USD 5.3 billion across 267 deals, a report has said.

DataLabs by Ic42 said in its annual report that Indian startups got 766 deals in 2019. Between 2014 and 2019, the total deals have crossed the 5000 mark.

The top spot went to Sequoia for securing 53 deals. Accel was up next with 38, followed by Blume Ventures, Matrix Partners and Tiger Global were the top venture capitals.

“The Indian startup economy is entering a new decade with over USD58 billion in fundraising and 2,984 funded startups between 2014-2019,” said the report.

With an average of USD21 million, the ticket size value of funding increased by 15% in 2019. E-commerce and fintech - with USD 2.6 billion funding each - took the top slot with 93 deals and 125 deals, respectively.

“E-commerce continued to remain at the top by the end of 2019. The growing investor confidence towards sub-sectors such as vertical e-commerce, social commerce and private label businesses are one major factor for e-commerce maintaining its lead,” a DataLabs spokesperson said in a statement.

According to estimates, the funding amount and deal count in 2020 will be around USD12.6 billion at a 1% decline from 2019.

“Nevertheless, the investment activity is expected to rise in 2021,” said the report.

The data suggests that 2019 had the lowest number of startups funded (664) in the last five years, with seed-stage funding deals dropping by 53 percent, compared to 2016.

With USD 252 million in funding, the seed-stage deal value fell by 44% (compared to 2018) as only 306 seed funding deals were recorded, the report said. The enterprise tech had a blockbuster year with total funding of USD1.15 billion across 114 deals in 2019. The sector recorded a 49% surge in total funding amount, compared to 2018. The Indian startup economy saw 275 unique VCs participating in funding in 2019, said the report.